Eaton May Generate More Upside

The power management company's stock, which has been a long-term winner, should keep rising.

Eaton has been a stellar performer for shareholders, long-termers and newcomers alike. Over the past 15 years the stock has returned 8.8% a year, nearly twice as much as the Standard & Poor's 500 index. It has also done twice as well as the index so far this year, returning nearly 15%.

Now Eaton's (ticker: ETN) stock price sits at 14 times this year's earnings forecast, even with the broad market. Eaton, which makes electrical equipment, hydraulic systems and other industrial goods, says it hopes to grow core revenues...